Creditors’ review critical over Tsipras social package

Dec, 20 2016
Author: newsroom

EuroWorking Group to discuss report Tuesday

Greece’s creditors will discuss a special report focusing on the possible impact the recent promises PM Alexis Tsipras made for a pension “bonus” to low income pensioners will have of the adjustment program at the EuroWorking Group, Tuesday. The report, dated December 14, is particularly critical of the procedures adopted by the Greek authorities, while the report is also expected to question the surplus, pending the April Eurostat report on the real impact on the fiscal figures in the Greek economy. According to newspaper Kathimerini, the report lambasts Greece for failing to brief the institutions regarding the specific social benefits during their meeting with the Greek authorities before the measures were announced by Greek PM Alexis Tsiptras. The Greek government was warned to refrain from taking any actions without the prior knowledge of the institutions, as the report introduction underlines. “The institutions had explicitly recommended to not add more costs on the pensions in the event of the surplus exceeding the target, but to pay any outstanding debts or to hoard security reserves”, the report says. More specifically, on the 13th pension, the reports expresses concern over over the substance and the procedures adopted as “it is essentially questionable whether the package of measures are adequately targeted to address the more pressing needed”. The document also doubts whether the surplus will actually achieve the stated 0.75% GDP surplus, in lieu of the projected 0.5%. “The current EU institutions estimate a positive margin, burt lower than what the Greek authorities forecast”, the report warns.